This week has been truly brutal for the entire cryptocurrency sector, with the prices of major currencies like Bitcoin and Ethereum crashing at least 30%. The overall sector has shed trillions of dollars in value.
The recent carnage for holders of digital currencies could be due to a variety of factors including profit taking spurred by Elon Musk, an easing of inflation worries, or concerns about new regulations coming down the pike.
Whatever the case may be, some of the capital that recently left the crypto space has found its way into the gold and silver markets. This trend could continue as well, with precious metals gathering strength and with Bitcoin still having plenty of room to fall further.
Financial markets have become a complete joke. From GameStop to Dogecoin to non-fungible tokens (NFTs), a plethora of assets have been pushed to laughable heights with the help of the Federal Reserve’s funny money.
Just about everyone, except for stone-faced Fed officials, seems to be in on the joke.
Dogecoin promoter and billionaire Tesla founder Elon Musk poked fun at cryptocurrencies and the U.S. dollar itself during his hosting duties last weekend on Saturday Night Live.
During the “Weekend Update” segment, Musk appeared in character as a cryptocurrency guru. He admitted Dogecoin began as a joke.
“What is Dogecoin?” Musk was repeatedly asked. The punchline was that any answer he gave failed to explain what it actually is.
However, this potential dollar rout has been in the making for many years.
Abusive monetary and fiscal policy in Washington DC combined with heavy-handedness with respect to access to our dollar-based global payment network have given other nations pause – and some foreign leaders have been quietly taking action.
In the next few years, the Chinese Yuan or even a global digital currency spearheaded by the International Monetary Fund appear likely to gain traction as alternative reserve assets.
The negative effect of America’s fiat dollar losing its top spot on the international stage cannot be overemphasized. The greenback’s markdown would come with significant pains for all who use our “beloved” Federal Reserve Note.
By Stefan Gleason web posted May 10, 2021
Is it a temporary blip… or the beginning of a long-term trend? That’s the key question facing consumers, investors, and retirees when it comes to inflation.
There’s no denying that inflation pressures have picked up dramatically over the past 12 months. Price spikes in commodities including
copper, grains, gasoline, and lumber tell the story – as do the raging bull markets in equities and housing.
Rapidly rising prices across an array of asset classes are a symptom of excess currency creation.
As economist Milton Friedman famously noted, “Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.”
The jobs report was a major piece of economic data-possibly the most important of the month.
Expectations were high-consensus estimates were looking for an additional 1 million jobs created last month as the economy looks to rebound from the viral pandemic. The 266,000 jobs added was far below that expectation, however, as the government-reported unemployment rate also ticked higher to 6.1%.
There are two primary issues at work in gold that could point to higher prices.
The first issue is the data weakness itself. If the jobs market is not strong and recovering, it stands to reason that other parts of the economy may also weaken.